07-Feb-2011 : FX Daily Report by GFM Research

Dollar continued to rally for the second straight day on Friday 04th Feb, against every major pair after unexpected sharp decline in unemployment rate in US to 9.0 percent for January 2011 against median expectation of 9.5 percent. Nonfarm payroll showed a minimal increase of 36,000 well against the consensus of 140,000. EURUSD continued to decline for third consecutive day and made a low of 1.3543 before settling at 1.3585. Dow Jones continued its momentum and settled near days high of 12091.77. $93 again proved to be major hurdle for crude, prices settled at $89.11 on Friday, $2.55 off from day’s high of $91.66. USDCHF and USDJPY posed decent recovery and settled with a positive note.

EURUSD need to hold support of 1.3488 for avoiding further price loss. Stay long in USDCHF and USDJPY for 0.9680 and 82.92 respectively in near-term.

           Trend                 Trading Strategy

                 Down          Sell in the ranges of 1.3684-1.3688 S/L: Above 1.3720 TGT:1.3530
                                               Buy in the ranges of 1.3528-1.3530 S/L: Below 1.3488 TGT:1.3684
GBPUSD               Sideways       Sell in the ranges of 1.6240 S/L: above 1.6320 TGT: 1.5990
USDCHF                    Up           Buy at 0.9535-0.9530 S/L: Below 0.9450 TGT:0.9680
USDJPY                Sideways       Buy in the ranges of 81.75-81.78 S/L: Below 80.93 TGT1: 82.40 TGT2:82.92
EURJPY                Sideways       Range bound between 110.80-113.00 
AUDUSD                   Up           Buy in the ranges of 1.0125-1.0120 S/L: Below 1.0055 TGT:1.0208

Disclaimer: This report contains the viewpoints of GFM Research. This report should not be construed as investment/trading advice. Due care is taken when gathering the data/information and the data sources are believed to be reliable, though GFM Research nor its Group Companies guarantee for the same. Trading/investing in financial markets may result in financial and/or emotional stress, a trader/investor is advised to weigh pros and cons of trading/investing. Further disclaimer will be produced on request.

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